10. AARON GILMORE (National) Link to this
to the Minister of Revenue
What has Inland Revenue done to assist the people in Christchurch after the February earthquake?
Hon PETER DUNNE (Minister of Revenue) Link to this
The Inland Revenue Department has responded both nationally and locally to this extraordinary event. Initially the response was focused on communicating to taxpayers that they should focus first on family and friends, and not on tax. Subsequently Inland Revenue Department has also been working with the Ministry of Social Development to deliver the earthquake support package. The second stage of support has been focused on addressing issues with regard to ongoing tax compliance and helping taxpayers to get back on their feet. In that regard Inland Revenue Department has applied all tax discretions available to it to Canterbury people who have been affected by the earthquake.
What policy changes has the Government announced as a result of the earthquakes, and how will they help the people of Christchurch?
A number have been announced. I made an announcement this morning regarding depreciation roll-over relief and the recognition of employer welfare contributions made to staff not being taxable. We have also provided an exemption so that businesses do not have to pay tax or gift duty on trading stock donated within 4 months of either the September or the February quakes. We are proposing to extend the redundancy tax credit to 30 September this year in order to alleviate the impost of use-of-money interest on late payments of tax. The commissioner will use his discretion to extend statutory tax dates on a case by case or class by class basis, and we have exempted certain payments made to families who receive Working for Families tax credits as a result of the earthquakes from having to count as income.